NOT CONSIDERING THE INHERENT RISKS INVOLVED, which is potentially the most profitable "TRADING" area to be in?

Question

Is it, theoretically speaking:

1- Options & Futures …… (And if so, in what underlying area?)


2- Forex Trading ……. (And if so, which currencies)

or

3- Neither ……. (And if so, why not and what area would you recommend instead?)


Which one offers the most theoretical/potential return and requires the least upfront outlay?

Again, NOT considering the inherent risks, BUT merely the potential for return.

Please, offer as much detail as possible. Thank You!

P.S. Please also note, that I am talking about "Trading" and NOT "Investing".

E.V. - Thanks for your great advice.

g3n1ouz0 - What an incredible piece of creative writing. I wish, I could reward it with the BA, but unfortunately its ingenious satire does not really address the question. In other words, it would not be exactly fair to others to pick it as the BA. Nonetheless, THANK YOU for such a wonderful piece of writing - I know you must have put some time into that. Thanks again.

Sheepherder - Great to have you back, dear. So you are recommending a pot of gold to be buried in the backyard, huh? I hope things don't get as bad as you are predicting, at least for another 50 years or so! :-) .... Then again, you’re an old (only in spirit, okay lol) fox who has been around so: When Sheep talks, the market might get sheepish! :-) :-)

Answer 1

The average option has leverage between 8-15 times the underlying instrument. Forex has on average 100:1 leverage, giving greater opportunity for profits. Now add options to the forex market. Options are becoming more common place in the forex market and they will become more liquid and in expensive as time goes on. In the end, I think your best profitability could come from forex and later forex options. As you said, not approaching the risk involved.
And as far as being a trader is considered, bravo. A great quote from Atlas Shrugged:
"The symbol of all relationships among such men, the moral symbol of respect for human beings, is the trader. We, who live by values, not by loot, are traders, both in matter and in spirit. A trader is a man who earns what he gets and does not give or take the undeserved. A trader does not ask to be paid for his failures, nor does he ask to be loved for his flaws. A trader does not squander his body as fodder or his soul as alms. Just as he does not give his work except in trade for material values, so he does not give the values of his spirit - his love, his friendship, his esteem - except in payment and in trade for human virtues, in payment for his own selfish pleasure, which he receives from men he can respect."

Answer 2

I'll trade ouzo for tequilla :-D :-D :-D

Potential return? --- Sharing of great "spirits".
Important requirement.... one party provides the nachos the other provides meze on an upfront table outlay.
Risks involved? --- At worse an animated perception of reality :-) :-) :-)

Ok...now go read your serious replies :-)

Answer 3

considering the leverage, liquidity and startup, i'd definately say Forex trading with the majors (eurusd, gbpusd, usdjpy, usdchf) . Options would be my second choice... but darn difficult imo

Answer 4

just close your eyes and pick one!...that's what you're doing when you trade anything in days like these. i hold a very pessimistic view of our futures......please buy gold and bury it in your back yard, that's how bad i feel it's going to get very soon....sigh